Bank of Industry (BOI) And SMEs Development in Ikeja Business District, Lagos State, Nigeria

Ojelade Mathew Ojeleke; Ishola  James Aransiola; Ajayi  Johnson Kolawole

Ojelade Mathew Ojeleke Department of Business Administration, Thomas Adewumi University, Oko, Kwara state, Nigeria
Ishola James Aransiola Department of Business Administration, Thomas Adewumi University, Oko, Kwara state, Nigeria
Ajayi Johnson Kolawole Department of Business Administration, Thomas Adewumi University, Oko, Kwara state, Nigeria

Keywords: Development, Small and Medium Enterprises, Bank of Industry, Performance

Abstract

The aim of this study was to establish and assess the contribution of the Bank of Industry towards SMEs development in Ikeja Business District, Lagos state, Nigeria. The study aimed at ascertaining the financial contribution of the Bank towards the economic advancement of the area through provision of financial assistance to SMEs operators in the state. A simple random technique was used to select the respondents who are beneficiaries of the facility within the study area according to BOI directory, 2018. Data were collected through the use of questionnaire. The questionnaire was administered on a sample of one hundred and twenty (120) SMEs operators using a random sampling technique. Ninety two (92) of the questionnaire were correctly filled and returned. Bivariate regression analysis with the help of SPSS version 25 was used to test the formulated hypotheses. Findings from the Analysis revealed that although the identified predictor (BOI’s financial contribution) is a good predictor of SMEs development and is statistically significant, its contribution is too minimal and is presented with the coefficient and probability value of (β1= 0,085, p<0.05) at 5% significance level. This indicates that for every unit of the financial contribution offered by the Bank of Industry towards the development of small and medium scale enterprises in the study area, the effort only produces a paltry 8.5% change in SMEs development. The study recommends among other things that the expansion of the power of BOI as the apex institution for the development and promoting of SMEs in Nigeria should be considered with vigor,so that BOI would perform its statutory mandate of giving assistance to SMEs operators.